DENVER-The central business district is showing the biggest turnaround of all of the submarkets, according to the latest office report by Denver-based Fuller Real Estate. The CBD showed positive absorption of 580,000 sf, according to Fuller’s mid-year report. Oil and gas companies alone are expected to take an additional 200,000 sf to 400,000 sf by year’s end, Fuller is predicting.

“This resulted in a decrease in the vacancy rate of 1.5% to an overall (vacancy rate) of 16.2%,” according to the report. “The Southeast market’s absorption, while not as significant as in the second half of 2004, continued to improve with over 125,000 sf of absorption, reducing the vacancy rate to 21%.”

However, not all markets could boast positive absorption. Fuller notes that Aurora is showing negative absorption of 60,000 sf and the Colorado Boulevard market negative absorption of 70,000 sf.

Still, “the Denver area had an impressive 1.1 million sf of positive net absorption during the first half of 2005,” according to Fuller. “This healthy activity lowered the overall vacancy rate to 18.2%, including sublease space.”

The report adds that current leasing activity is especially strong with tenants seeking less than 20,000 sf. “There continues to be significant ‘organic’ growth among smaller, locally based companies who are hiring and growing,” Fuller notes. “Much of the market’s absorption can be attributed to these smaller firms who, while not making the headlines, are having a very positive effect on the Denver market.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.